Hero MotoCorp Ltd., has picked up a 49.2 % stake in Erik Buell Racing LLC (EBR ), a maker of high end motor cycles. Hero, has picked up stake in the company for a consideration of $ 25 million, and the remaining stake is held by Erick Buell, the founder & CEO of the company. Erik Buell, is an ex Harley engineer and had started his own company, which later became an unit of Harley-Davidson. In 2009, Buell launched Erik Buell Racing after Harley-Davidson ended the Buell product line.
Hero MotoCorp Ltd investment in EBR is being done through the company’s wholly-owned American subsidiary – HMCL (NA). As a part of the equity deal, Hero MotoCorp will have two directors and on observer on the EBR board. No changes are proposed in the management structure of the company.
Hero MotoCorp., has been working on aggressive growth plans and expansions in new geographies. The company is soon going to commence our operations in Africa – with launches in Kenya, Ivory Coast and Burkina Faso, and they also plan to launch in Peru and Ecuador in Latin America. These new expansions are in addition to the businesses existing presence in Colombia.